Swatts v. United Steelworkers of America

585 F. Supp. 326, 116 L.R.R.M. (BNA) 2110, 1984 U.S. Dist. LEXIS 17316
District Court, S.D. Indiana·Decided April 24, 1984·No. IP 81-780-C·Published·Cited by 5 cases

Opinion

ENTRY

DILLIN, Chief Judge.

The plaintiffs claim that the union violated its duty to represent them fairly in six ways. The Court grants the defendant’s motion for summary judgment as to the following claims: that the union misrepresented the company’s right to hire permanent replacements during the strike in question here, that the union misrepresented the strike fund benefits available to plaintiffs, and that the union failed to accept an offer to extend the contract term by 90 days before striking.

Three claims remain to be decided at trial. The first is whether the union illegally bargained to an impasse over a nonman-datory issue, thereby harming plaintiffs. The second is whether the union improperly influenced favored union members to cross the picket line and return to work. The third is whether the union improperly agreed to a method for determining how workers would be recalled for work when vacancies occurred after the strike.

Memorandum

Background

This action arises from an economic strike at the Edgecomb Metals plant in Indianapolis in 1980 and 1981. This plant was one of several formerly owned by Jones & Laughlin Steel Company (hereinafter “J & L”) and was covered by the nationwide labor agreement between the Steelworkers and the nation’s largest steel producing firms. The Indianapolis plant and four others used as “service centers” were governed by the same single contract between J & L and the union. In 1978, J & L sold the five plants to Edgecomb, which also owned other such “service centers,” some of which had designated the Steelworkers as bargaining agents. Edgecomb accepted the terms of the nationwide steel contract as governing the five plants purchased from J & L, including the Indianapolis plant, until the end of the contract term.

When the contract term neared completion, the union and Edgecomb began to discuss a new agreement. From the beginning, Edgecomb took a tough bargaining position, insisting that workers give up a number of benefits that they had won from J & L, including an automatic cost of living pay increase. Negotiations were carried on for several months. No pact had been reached by October 1, 1980, the date the contract then in force expired, so union members in Indianapolis and several other “service centers” went on strike against Edgecomb. During the strike, the union hired strikebreakers to replace about 20 to 30 striking employees and continued to carry on its business on a limited basis despite picketing. After about three months of striking, a tentative agreement was reached; Edgecomb, however, refused to agree to terminate the workers who were hired during the strike and the union refused to agree to a new contract unless these new employees were fired.

In early March, 1981, after about five months of striking, 23 members of the union crossed the picket line in Indianapolis to go back to work, effectively ending the strike. The remaining strikers were placed on a recall list for positions to become available as vacancies occurred, but there is no evidence that any one of them has been called back to work. Once the 23 returned to work, the strike ended because Edgecomb stated that there were no longer any positions that needed to be filled. Approximately 60 workers, most or all of whom are plaintiffs in this action, were left without jobs. The union continues to represent the employees at Edgecomb — those hired during the strike and those 23 who first crossed the picket line. Their contract contains fewer beneficial features than the *329 original contract between J & L and the Steelworkers.

Discussion

The duty of fair representation arises from § 301 of the National Labor Relations Act, 29 U.S.C. § 185, which authorizes “Suits for violation of contracts between an employer and a labor organization ....” This section has been held by the Supreme Court to imply a duty on the part of an exclusive bargaining agent to fairly represent the interests of the members of the bargaining unit.

[T]he exclusive agent’s statutory authority to represent all members of a designated unit includes a statutory obligation to serve the interests of all members without hostility or discrimination toward any, to exercise its discretion with complete good faith and honesty, and to avoid arbitrary conduct.

Vaca v. Sipes, 386 U.S. 171, 177, 87 S.Ct. 903, 910, 17 L.Ed.2d 842 (1967). The judicially created duty originally was held to apply to the union’s obligation to its members when it negotiated a contract. Ford Motor Co. v. Huffman, 345 U.S. 330, 73 S.Ct. 681, 97 L.Ed.2d 1048 (1953). It later was extended to the union’s duty to its members while administering the collective bargaining agreement, Humphrey v. Moore, 375 U.S. 335, 84 S.Ct. 363, 11 L.Ed.2d 370 (1964), and suits by workers who allege that their unions improperly handled grievances under collective bargaining agreements now dominate the field of unfair representation law.

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Swatts v. United Steelworkers of America, 585 F. Supp. 326, 116 L.R.R.M. (BNA) 2110, 1984 U.S. Dist. LEXIS 17316 (S.D. Ind. 1984).

585 F. Supp. 326 (Swatts v. United Steelworkers of America) — published by Counsel Stack Legal Research, free access to 12M+ legal documents.

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